Growth in domestic debt has been largely driven by growth in treasury bills and treasury bonds issued.
With an ever growing budget, currently at Sh2.6 trillion, Kenya has been forced to borrow more and more money to meet the deficit.
In December 2016, the government issued a Sh30 billion 15-year bond with a 12.5 per cent return rate to help fill a Sh689 billion budget deficit.
The government borrowed up to Sh20.4 billion a week in 2015 from the 91,182 364-day bills whose interest rate rose to highs of 23 per cent in November 2015 from 8.2 per cent in July 2015.
In early 2017, the government launched the M-Akiba mobile-based bond platform that allows one to invest as little Sh3,000 in government bonds.
Total internal debt reduced slightly at the end of 2017 from Sh2.228 trillion at the end of November to Sh2.221 trillion at the end of December. Attributed to a lower treasury bills uptake by the public.
The country’s total public debt, stood at more than Sh4.5 trillion as at 20th November 2017 and has been growing at a time revenue collection is falling short due to an acrimonious political environment that followed a drought earlier in the year.